Lee Hyo-sik is Finance Desk editor at The Korea Times. He manages finance-related stories on macroeconomics, banks, stocks, bonds, crypto etc. He is passionate about covering what's happening in Korea's financial industry and explaining it to both Korean and non-Korean readers. You can reach him at leehs@koreatimes.co.kr. Your insights and feedbacks are always appreciated.
Corporate-owned sports cars outlaws on road
By Lee Hyo-sik
A number of imported fancy sports cars purchased under corporate names are found to have largely been used by company owners and their family members for personal use. Many of the drivers are also found to have violated traffic rules and defaulted on penalty payments.
According to data submitted to Rep. Ahn Hong-joon of the governing Grand National Party by the National Police Agency, Thursday, drivers of 294 sports cars registered under various corporate names were breaking a wide range of traffic rules and have been given a combined 850 tickets for violations over the past three years.
Of the 850 tickets, 23.5 percent, or 200, have still not been paid, Rep. Ahn said. Some of the cars are Porsches, Ferraris, BMWs and Mercedes-Benzes.
By company, Hanwha Corp. came out on top as several Porsche and Mercedes-Benz sports cars the firm owned were cited for traffic violations a total of 61 times.
The driver of a Porsche Cayenne, owned by Malpyo Industrial, a maker of shoe polish, received a speeding ticket and broke other traffic laws on 28 occasions, while a Porsche Cayenne Turbo, owned by Seomi Gallery, was issued with 10 tickets for speeding and other violations.
Speeding was the most common traffic offense committed by drivers of corporation-owned sports cars. They were also given tickets for making illegal turns, parking illegally, using a cellular phone while driving and driving in bus-only lanes on expressways.
``Many companies have been found to own expensive sports cars and sedans. The problem is that these cars are mostly used by corporate owners and their family members for personal use. It shows that they buy vehicles under corporate names in order to pay lower acquisition and property taxes,’’ Rep. Ahn said.
The lawmaker then said motorists in fancy corporate sports cars have broken traffic rules many times, indicating the vehicles are operated in a reckless way, which might endanger other drivers.
``It is not right for corporate-registered cars to be used for individual purposes. Companies were also found to have paid fines on behalf of owners and their family. All this constitutes embezzlement. The law enforcement authorities should look into the case and take measures to stop this dubious practice,’’ he said.